Oppenheimer Initiates Sempra Energy At Perform

Oppenheimer has published a research report on Sempra Energy SRE and has initiated the company with a Perform rating. In the report, Oppenheimer writes "We are initiating coverage of Sempra Energy with a Perform rating and a $56 price target. We expect SDG&E's EPS to grow by about 10% per year from 2009 to 2013, driven by investments in transmission, smart meters, and renewables. We expect growth at SoCalGas of around 4%. While we think the stock may outperform in the near term due to our expectations for a 20% dividend increase early next year, our Perform rating reflects our muted outlook for Sempra's liquefied natural gas (LNG) business and its natural gas storage segment. Our expectation of continued low natural gas prices and the development of shale gas in the Northeast should maintain pressure on those segments." Sempra Energy closed yesterday at $50.80.